A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the project's 10 year life. However, the firm expects to sale the assets for $500,000 in 10 years. What is the PV of the after-tax salvage value if r = 10% per year, and the firm's tax rate is 32%?
A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the project's 10 year life. However, the firm expects to sale the assets for $500,000 in 10 years. What is the PV of the after-tax salvage value if r = 10% per year, and the firm's tax rate is 32%?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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